Credit unions; voluntary mergers. (HB874)

Introduced By

Del. Greg Habeeb (R-Salem)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Credit unions; field of membership. Permits the State Corporation Commission (SCC) to authorize a new group to be included in the field of membership of a state credit union if the state credit union (i) is adequately capitalized and will continue to have insurance on its members' shares and other accounts; (ii) has not engaged in any materially unsafe or unsound practice in the year preceding its application to expand; and (iii) has the management, administrative, and financial resources to serve the additional group effectively. The measure deletes provisions that (a) direct the SCC to encourage the formation of a separately chartered credit union instead of adding a new group to the field of membership of an existing credit union, (b) require the SCC to determine whether adding a new group is consistent with reasonable safety-and-soundness standards, (c) require the SCC to find that a new group to be included in the field of membership of a credit union is located within reasonable proximity, and (d) prohibit the SCC from authorizing the inclusion of a new group unless it finds that any potential harm to another insured credit union or its members that would likely result from the proposed expansion is clearly outweighed in the public interest by the probable beneficial effects of the proposed expansion in meeting the convenience and needs of the members of the group proposed to be included. The measure provides that a credit union's ability to merge with another credit union is not affected by whether the credit unions serve a field of membership based on common bonds or on well-defined geographic areas. The measure replaces the condition that the field of membership of a credit union be composed of persons or organizations within a well-defined local community, neighborhood, or rural district with a condition that the field of membership be composed of persons or organizations within one or more well-defined geographic areas, which is defined in the bill as a local community, neighborhood, or rural district; one or more contiguous cities or counties, whether within or outside the Commonwealth; a combined statistical area; or any contiguous portion of a combined statistical area. The measure directs theSCC in its discretion to determine whether a proposed field of membership constitutes a well-defined geographic area and bars "well-defined geographic area" from being defined or construed as the entire Commonwealth. The measure deletes existing requirements that each group in a multiple common bond credit union have no more than 3,000 members and that the SCC give consideration to National Credit Union Administration guidelines in determining provisions applicable to a multiple common bond credit union. The measure adds limited liability companies to the list of business entities that are eligible for membership in a credit union if they are composed of persons eligible for membership; makes business entities eligible for membership in a credit union if they are composed primarily, rather than exclusively, of persons eligible for membership; makes a business entity eligible for membership in a credit union if one of the entity's principal functions is to provide services to members of the credit union; and authorizes the Commonwealth and any locality or other political subdivision of the Commonwealth to become members of a credit union for purposes of placing deposits in the credit union. Read the Bill »

Outcome

Bill Has Passed

History

DateAction
01/12/2016Committee
01/12/2016Prefiled and ordered printed; offered 01/13/16 16103855D
01/12/2016Referred to Committee on Commerce and Labor
01/15/2016Impact statement from SCC (HB874)
02/11/2016Reported from Commerce and Labor with substitute (22-Y 0-N) (see vote tally)
02/11/2016Committee substitute printed 16105488D-H1
02/13/2016Read first time
02/15/2016Read second time
02/15/2016Committee substitute agreed to 16105488D-H1
02/15/2016Engrossed by House - committee substitute HB874H1
02/16/2016Read third time and passed House (93-Y 6-N)
02/16/2016VOTE: PASSAGE (93-Y 6-N) (see vote tally)
02/17/2016Constitutional reading dispensed
02/17/2016Referred to Committee on Commerce and Labor
02/17/2016Impact statement from SCC (HB874H1)
02/22/2016Reported from Commerce and Labor with amendment (13-Y 2-N) (see vote tally)
02/24/2016Constitutional reading dispensed (39-Y 0-N) (see vote tally)
02/25/2016Read third time
02/25/2016Reading of amendment waived
02/25/2016Committee amendment agreed to
02/25/2016Engrossed by Senate as amended
02/25/2016Passed Senate with amendment (39-Y 1-N) (see vote tally)
02/26/2016Placed on Calendar
02/29/2016Senate amendment agreed to by House (98-Y 0-N)
02/29/2016VOTE: ADOPTION (98-Y 0-N) (see vote tally)
03/01/2016Enrolled
03/01/2016Bill text as passed House and Senate (HB874ER)
03/01/2016Signed by Speaker
03/03/2016Impact statement from SCC (HB874ER)
03/04/2016Signed by President
03/11/2016G Governor's Action Deadline Midnight, Monday, April 11, 2016
03/11/2016Enrolled Bill communicated to Governor on 3/11/16
03/11/2016G Governor's Action Deadline Midnight, Sunday, April 10, 2016
03/11/2016G Approved by Governor-Chapter 396 (effective 7/1/16)
03/11/2016G Acts of Assembly Chapter text (CHAP0396)
03/11/2016G Acts of Assembly Chapter text reprinted (CHAP0396)

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 3 clips in all, totaling 3 minutes.

Transcript

This is a transcript of the video clips in which this bill is discussed.

HOUSE BILL 874. A BILL RELATING TO DIT UNIONS VOLUNTARY. THE QUESTION IS SHALL THE COMMITTEE AMENDMENT BE AGREED TO. ALL IN FAVOR SAY AYE. THOSE OPPOSED, NO. THE AYES HAVE IT,. THE COMMITTEE AMENDMENT IS AGREED TO. THE SENIOR SENATOR. WITH THE ADOPTION OF THE COMMITTEE AMENDMENT IT ALLOWS FOR THE MERGER OF CREDIT UNIONS THE CREDIT UNION SIZE. THE REQUIREMENT IS THAT THEY ONLY BE STATE CHARTERED CREDIT UNIONS WITH A MEMBERSHIP OF 35,000 OR LESS AND WITH THAT I WOULD MOVE THAT WE PASS THE BILL.

Del. Bill Howell (R-Fredericksburg): THANK YOU, SENATOR. THE QUESTION IS SHALL HOUSE BILL 874 PASS. ALL IN FAVOR OF THE MOTION WILLS AYE, THOSE OPPOSED NO.


[Unknown]: TURNING TO PAGE 14, HOUSE BILL 874 A BILL TO AMEND AND REENACT SECTION OF THE CODE OF VIRGINIA RELATED TO CREDIT UNION.

Del. Bill Howell (R-Fredericksburg): GENTLEMAN FROM SALEM, MR. HABEEB.

Del. Greg Habeeb (R-Salem): MR. SPEAKER, LADIES AND GENTLEMEN IT IS PART OF THE DEAL WITH THE BANKERS. THE SENATE AMENDMENTS EMBODY THAT AGREEMENT. AND WE HAVE DEALT WITH SENATOR STANLEY'S BILL AND I REQUEST THE BODY ADOPT THE AMENDMENT. SHALL THE AMENDMENT BE AGREED TO? CLERK WILL CLOSE THE ROLL.